There is an experimental version of MediaTools application available at mediatools-v5-sa.zip (Windows) and Mediatools-v5-Mac.sit (Macintosh). This version includes the facility to scale down (or up) pictures, so if you have a huge picture from a digital camera, you can scale it down to make it easier to use in movies and collages.
Download this file.
Unpack it in your MediaTools directory.
Simply drag mediatools-v5-sa.image (instead of mediatools-v4-sa.image) onto your Squeak application. (The Squeak application is available on your CD in the MediaTools directory, or from http://www.squeak.org. The Macintosh file above INCLUDES the VM, because you must use the latest VM with this version of MediaTools.)
The scaling button is in the Pixel Tools. Click the button. It will ask you to pick a JPEG file, then ask you how much to scale it (e.g., 0.25 will be 25% of the original size). The file will then be saved as "s"+filename, e.g., "beach.jpg" becomes "sbeach.jpg" (for Scaled beach.jpg).